- The SEC asked a judge to hold CEO Elon Musk in contempt for violating a settlement deal.
- Musk responded and called SEC's oversight "broken" in tweet.
- Shares of Tesla (TSLA) closed down less than 1% after dipping as much as 4%.
From Peter Haveles, partner in the trial and dispute resolution group at the law firm Pepper Hamilton:
On the list of potential consequences, according to experts:
He labeled Musk's behavior as "careless" and said:
Here's the order:
He tweeted that something is broken with the agency:
Musk said in September that he had secured funding to take Tesla private at $420 a share. But he had not secured the funding, according to the SEC.
Here's why:
Although Musk corrected his mistake, regulators scolded Tesla's billionaire CEO because he "once again published inaccurate and material information about Tesla to his over 24 million Twitter followers," according to court papers filed Monday.
The SEC noted that he did not ask for or receive company approval before publishing his tweet.